Antigua and Barbuda Corporate Tax - Guide for International Expansion

Are you considering expanding your business operations to Antigua and Barbuda? Understanding the corporate tax landscape is essential for making informed decisions about your Caribbean expansion strategy.

This comprehensive guide covers everything you need to know about corporate taxation in Antigua and Barbuda, from current rates to payment procedures and compliance requirements. Whether you're establishing a new subsidiary or exploring investment opportunities in this twin-island nation, having a clear grasp of your tax obligations will help ensure smooth business operations. With Wise Business, you can also streamline your international payments and manage multi-currency transactions efficiently as you expand into this Caribbean market.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Antigua and Barbuda Corporate tax rate in 2025

The standard corporate income tax rate in Antigua and Barbuda is 25% for the 2025 tax year. This rate applies to the taxable profits of companies incorporated in Antigua and Barbuda, as well as foreign companies conducting business through a permanent establishment in the country.¹

Antigua and Barbuda's corporate tax rate of 25% positions it within the middle range compared to other Caribbean jurisdictions. The country follows a territorial tax system for certain types of income, which can provide advantages for international business structures. Companies resident in Antigua and Barbuda are generally taxed on their worldwide income, whilst non-resident companies are typically only taxed on income derived from sources within Antigua and Barbuda.²

The tax year in Antigua and Barbuda typically runs from 1 January to 31 December, though companies may apply for different accounting periods with approval from the Inland Revenue Department.¹ Corporate tax is administered by the Inland Revenue Department, which falls under the Ministry of Finance and Corporate Governance.³

Read more about Corporate Tax Planning best practices

How to pay corporate tax in Antigua and Barbuda

Corporate tax payments in Antigua and Barbuda are made in Eastern Caribbean Dollars (XCD), the official currency of the country. Companies must file their corporate income tax returns and make payments through the Inland Revenue Department, which serves as the primary tax authority for the twin-island nation.³

The tax must be paid in monthly instalments based on the amount of taxes assessed the previous year. The monthly payments are due on the last day of every complete month of a corporation's taxation year. The balance of tax payable (final settlement) for a taxation year is due within three (3) months of the end of that taxation year.⁴

Late payment of corporate taxes typically incurs interest charges and penalties. The penalty for late or incomplete payments is 20% of the unpaid tax, plus an additional 1% for each complete month that the balance remains outstanding. Furthermore, if a corporation files its annual tax return late, a separate penalty of $500.00 or 5% of the tax due (whichever amount is greater) applies, making timely compliance essential for cost-effective business operations.⁴

Let's consider a practical example: if your company has annual revenue of XCD 4.05 million (approximately USD 1.5 million) and operates with a 10% profit margin, your taxable profit would be XCD 405,000. At Antigua and Barbuda's corporate tax rate of 25%, the annual tax liability would be:

XCD 405,000 × 25% = XCD 101,250

When expanding your business to Antigua and Barbuda, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Antigua and Barbuda

To stay compliant with Antiguian tax regulations, companies must meet several key obligations throughout the year:⁵

Register for taxes early

After incorporation, register your business with the Inland Revenue Department (IRD) to obtain a Tax Identification Number (TIN). This registration covers corporate tax (25% on resident companies’ worldwide income) and VAT, which becomes mandatory once your company meets the turnover threshold.

File annual returns

Companies must submit annual returns within the prescribed deadline each year, including details of directors, shareholders, and financial information. Maintaining an active registered office in Antigua, which serves as your official legal address, is also mandatory.

Maintain accurate records

Businesses must keep complete internal and financial records, such as meeting minutes, resolutions, accounting books, and financial statements, to ensure transparency and compliance with audit requirements.

Meet social security obligations

When hiring staff, employers must register with the Social Security office and contribute a set percentage of employee wages, matched by employee deductions, to fund national benefits like pensions and maternity leave.

Together, these measures ensure full legal and fiscal compliance for businesses operating in Antigua and Barbuda.

International Expansion to Antigua And Barbuda

Businesses expanding to Antigua and Barbuda see a unique opportunity to access a vibrant Caribbean economy with clear international appeal. Its nominal GDP surpasses USD 2 billion, while the real growth is projected at around 5% in 2023.⁶ The market is showing strong recovery momentum thanks to a tourism rebound and construction activity.

The island’s official language is English,⁶ the regulatory regime is well-established, and it offers favourable access for service-based, travel-connected, and offshore-adjacent business models. The island nation leans heavily on tourism (accounting for nearly 50% of GDP) and supporting services, which makes it relevant for companies in hospitality, lifestyle, fintech, and global remote operations.⁷

As a member of the Organisation of Eastern Caribbean States (OECS) and CARICOM, Antigua and Barbuda provides businesses access to a single currency (the Eastern Caribbean Dollar, pegged to the USD) and free trade across CARICOM nations. Political and social stability further strengthens its investment climate. The country consistently ranks among the top 40 globally for political stability, outperforming larger economies like the US and UK.⁷

From a tax perspective, Antigua and Barbuda stands out with a standard corporate tax rate of 25%, placing it among the jurisdictions often included in lists of “countries with zero or low corporate tax” alternatives, particularly when combined with available incentives.⁶

If your business is evaluating this expansion, here’s what you should do:⁸

• Conduct detailed market research tailored to Caribbean, tourism-driven consumption patterns.
• Develop a business plan for island logistics, local workforce availability, and sector opportunities.
• Choose a legal structure that fits your business goals and compliance needs.
• Register your business with the relevant authorities in Antigua and Barbuda.
• Set up tax registration promptly to take advantage of the country’s favourable tax regime.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Antigua and Barbuda

Applicants must file with the Antigua and Barbuda Intellectual Property and Commerce Office (ABIPCO) to incorporate a company in Antigua and Barbuda. Individuals aged 18 or above, of sound mind, and not bankrupt, can apply.

All companies must include the following elements:⁹

• Company name: Must be unique and approved by ABIPCO, not identical or confusingly similar to existing entities, and include a legal suffix such as “Limited,” “Corporation,” or “Inc.”
• Shareholder and director: At least one share, one shareholder, and one director are required. The same individual or corporate entity can fill both roles.
• Registered office: Every company must maintain a registered office within Antigua and Barbuda to receive official correspondence.

To complete incorporation, founders must prepare and submit:

• Articles of Incorporation and By-laws: The Articles outline company details such as share structure, directors, and purpose, while the By-laws define internal governance procedures.
• Statutory declaration by an Attorney-at-Law: Confirms compliance with Section 4(3) of the Companies Act, ensuring legal validity of incorporation documents.
• Notice of directors: Lists each director’s name, address, and occupation.
• Notice of registered office: Declares the company’s registered address, with updates required for future changes.

Applications may be submitted manually or through ABIPCO’s e-filing system, followed by payment of registration fees.

Types of Business Entities in Antigua and Barbuda¹⁰

• International Business Company (IBC):

  • Suits cross-border trade and international investment.
  • It requires at least one shareholder and one director (who can be the same person).
  • Enjoys tax relief on income from foreign sources, though local commercial operations and real estate ownership are restricted.

• Limited Liability Company (LLC):

  • Offers a flexible structure with no restrictions on local business.
  • Profits are generally taxed at the individual level, depending on the corporate tax percentage applicable to personal income.
  • Suitable for ventures requiring greater control and operational flexibility.

Both entities benefit from corporate tax preparation services and legal transparency, making Antigua and Barbuda an attractive base for regional and international businesses.

International corporate tax best practices

Successful international tax management requires a strategic approach that balances compliance with efficiency. Companies operating across multiple jurisdictions should prioritise staying current with local tax regulations and filing requirements in each country where they conduct business.

Maintaining detailed and accurate financial records is fundamental to effective tax compliance. This includes proper documentation of income sources, deductible expenses, and inter-company transactions. Regular reconciliation of accounts and systematic record-keeping can significantly reduce the risk of errors during tax preparation and potential disputes with tax authorities.

Understanding and leveraging double taxation agreements (DTAs) can provide substantial benefits for international businesses. These treaties help prevent the same income from being taxed in multiple jurisdictions and often provide reduced withholding tax rates on dividends, interest, and royalties. Companies should work with qualified tax advisors to ensure they're maximising available treaty benefits whilst maintaining full compliance with substance requirements.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Antigua and Barbuda efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Antigua and Barbuda

Who is liable for corporate tax in Antigua and Barbuda?

Companies incorporated in Antigua and Barbuda are liable for corporate tax on their worldwide income. Foreign companies conducting business through a permanent establishment in Antigua and Barbuda are also subject to corporate tax on income attributable to that establishment. The determination of tax residency typically depends on where the company is incorporated and where its central management and control are exercised.

Are there any tax incentives for businesses in Antigua and Barbuda?

Antigua and Barbuda offers various tax incentives to encourage investment and economic development. These may include reduced corporate tax rates for certain industries, tax holidays for qualifying investments, and accelerated depreciation allowances. The country's Citizenship by Investment Programme and various development incentive schemes can provide additional tax benefits for eligible businesses. Specific incentives vary depending on the sector, investment amount, and job creation commitments.

What is the tax treatment of dividends in Antigua and Barbuda?

Dividends paid by Antigua and Barbuda companies to non-resident shareholders are generally subject to withholding tax. The standard withholding tax rate may be reduced under applicable double taxation agreements. Dividends received by Antigua and Barbuda companies from foreign subsidiaries may qualify for participation exemptions or foreign tax credits, depending on the specific circumstances and applicable tax treaties.

What is the process for registering for corporate tax in Antigua and Barbuda?

Companies must register with the Inland Revenue Department for corporate tax purposes, typically as part of the business incorporation process. This involves submitting the necessary registration forms, providing corporate documentation, and obtaining a tax identification number. Companies should register promptly after incorporation or upon commencing business activities to ensure compliance with tax obligations from the outset.

What are the common pitfalls to avoid regarding corporate tax in Antigua and Barbuda?

Common pitfalls include failing to file returns on time, inadequate record-keeping, and misunderstanding the distinction between resident and non-resident tax obligations. Companies should also be careful about transfer pricing documentation for inter-company transactions and ensure proper substance requirements are met when claiming treaty benefits. Regular consultation with local tax advisors can help avoid these common compliance issues and ensure optimal tax efficiency.

Sources used in this article:

1. Biz Latin Hub: Tax Obligations in Antigua and Barbuda
2. Immigrant Invest: Taxes in Antigua and Barbuda
3. Inland Revenue Department (IRD): Corporation Tax
4. IRD: When do Corporations Pay Tax (PDF)
5. How to Set Up a Company in Antigua and Barbuda
6. Invest Antigua and Barbuda: Reasons to Invest
7. Global Citizen Solutions: Invest in Antigua and Barbuda
8. Offshore Protection: How to Set Up a Company in Antigua
9. Antigua and Barbuda Intellectual Property and Companies Office (ABIPCO): Companies Brochure (PDF)
10. Imperial Legal: Antigua and Barbuda Company Registration, Offshore Business Setup, Tax Guide
    Sources last checked 29/10/2025